UK Government Investments Ltd (UKGI), the government’s centre of excellence in corporate finance and corporate governance, has published its annual report and accounts covering the financial year to 31 March 2019.
While very broad in its scope and diversity, UKGI’s 2018-19 work covered three principal areas:
• Asset sales: UKGI had a record year for delivering government asset sales. Proceeds totalled £17bn, making a total of £40bn in receipts since the formation of UKGI in 2016.
• Sale of £2.5bn worth of Royal Bank of Scotland Group (RBS) shares in June 2018, reducing the government’s shareholding in RBS from 70.1 per cent to 62.4 per cent.
• Oversaw the disposal of £11.2bn of mortgage assets by UK Asset Resolution (UKAR), including the sale of Bradford & Bingley (B&B) buy-to-let mortgages and owner-occupied mortgages worth £5.3bn in April 2018, a £860m sale of B&B and NRAM equity release mortgages in September 2018, and a £4.9bn sale of NRAM mortgages and unsecured loans in March 2019.
• The completion of the second sale of pre-2012 English Student Loans, generating proceeds of £1.9bn
• The £1.46bn sale of part of Network Rail’s commercial estate to help fund its railways’ upgrade plan.
• Corporate governance: UKGI acts as shareholder for 17 entities in which the government has a shareholding and took on several new assignments in 2018/19 including Homes England, National Air Traffic Services (NATS), and East West Rail. UKGI also played an important coordination role in the discussions around Channel 4’s relocation.
• Corporate finance: UKGI advised government on all its financial interventions into corporate structures resulting from corporate or sectoral distress and other special situations.
Commenting, Mark Russell, UKGI CEO, said:
“This has been a strong year for UKGI: a large programme of asset sales generated over £17bn of receipts and the ongoing expansion of our shareholder portfolio and the agility shown by our staff in response to situations of corporate distress all demonstrate the indispensability of UKGI to government.
“We operate at the heart of some of the nation’s most important programmes, hence the attraction of UKGI as a place to work for many of the best people from both the Civil Service and the world of corporate finance.”
Notes to Editors
UKGI is the government’s centre of excellence in corporate finance and corporate governance. In addition to delivering over £40bn in asset sales since inception in 2016, it is responsible for a portfolio of arm’s length bodies, and for delivering a range of corporate finance advice to government. UKGI is owned by HM Treasury and independently managed with a Board comprised predominantly of independent non-executive directors. UKGI works closely with both the private and public sectors, advising and interacting with ministers, Parliament and Whitehall departments.
For further information:
UKGI: Kim Regisford – 0207 215 0611
Citigate Dewe Rogerson: Toby Moore, Andrew Hey, Jos Bieneman – 0207 638 9571